ADB and LPBank Secure $80M Package to Empower Women-Owned SMEs in Viet Nam

“Supporting SME customers in accessing capital is always an important strategy that LPBank prioritizes,” said LPBank Vice-Chairman Le Minh Tam.

The Asian Development Bank (ADB) and Lien Viet Post Joint Stock Commercial Bank (LPBank) have signed a financing package of up to $80 million to enhance financial access for women-owned small and medium-sized enterprises (WSMEs) in Viet Nam. The package includes a $30 million loan from ADB's ordinary capital resources and $50 million in syndicated parallel loans. Of this, $30 million comes from the Export-Import Bank of China and $20 million from the ILX Fund, an Amsterdam-based asset manager focused on supporting the Sustainable Development Goals in emerging markets. ADB acted as the lead arranger and bookrunner for the entire financing.

"By providing access to finance and tailored advisory services, our partnership with LPBank will empower women entrepreneurs in Viet Nam to thrive and contribute to the country's economic growth," said Suzanne Gaboury, ADB Director General for Private Sector Operations. "Working with development partners like the Export-Import Bank of China, ILX, and We-Fi, we aim to mobilize capital for private sector development that makes a meaningful difference to women-owned businesses in Viet Nam."

SMEs contribute 40% of Viet Nam's gross domestic product and half of all employment. However, commercial finance access remains challenging for women borrowers due to constraints like lack of collateral, low financial literacy, higher risk perception by banks, and limited awareness of the potential of the women's market.

The financing package will help LPBank develop new products and procedures to better support WSMEs. Additionally, a $750,000 performance-based grant from We-Fi will incentivize LPBank to expand its services to female borrowers and implement advisory support services for WSMEs.

"Supporting SME customers in accessing capital is always an important strategy that LPBank prioritizes," said LPBank Vice-Chairman Le Minh Tam. "With this loan package, LPBank not only has more potential in providing effective financial solutions for customers but also shows efforts in supporting WSMEs, especially where they are in great need of capital to recover from the pandemic and further develop their business."

LPBank, a leading private joint-stock bank in Viet Nam, boasts robust digital platforms and an extensive network of 566 bank branches and transaction offices, along with access to 513 postal transaction offices, facilitating its reach to customers in rural areas where other banks have limited presence.